Crackdown on gold smugglers and black market forex...

Crackdown on gold smugglers and black market forex as Zimbabwe fights for new currency’s stability

Philemon Jambaya

ASSISTANT EDITOR

Zimbabwe’s Vice President, General (Retired) Constantino Chiwenga, has issued a strong warning to gold smugglers and black market foreign exchange traders, vowing to implement strict measures to prevent “leakages” and currency manipulation.

This comes amidst efforts to stabilise the country’s newly-introduced gold-backed currency, the ZiG.

Since the ZiG’s launch, authorities have cracked down on moneychangers accused of “running down” the currency’s value. Over a hundred arrests have been made, with those involved facing charges under the Exchange Control Act.

Chiwenga, delivering a keynote address at a business conference, emphasised the need to plug gold smuggling loopholes, declaring “not a gram should leave the country”.

An Al Jazeera documentary last year exposed a network of potentially well-connected individuals allegedly smuggling gold out of Zimbabwe, causing significant financial losses. Investigations into these allegations, however, yielded little progress.

“We are going to put strict measures to ensure that we protect our resources as a country,” Chiwenga asserted.

“Every gram of gold must be accounted for. We need our gold because it is God-given.” He threatened “strict measures, that can see heads rolling” if gold continues to be smuggled.

The Vice President also addressed forex traders, assuring them that the ZiG will be firmly backed by Zimbabwe’s gold reserves, preventing exchange rate volatility and manipulation.

The ZiG was introduced to replace the Zimdollar, which suffered from hyperinflation. The government hopes the new currency will provide a lasting solution to inflation and stabilise the economy.

Chiwenga further extended the crackdown to the retail sector, threatening to shut down supermarkets suspected of sabotaging the ZiG.

This intense focus on protecting the ZiG reflects the government’s determination to overcome past economic challenges and establish a stable financial future for Zimbabwe.